Q1 2027 Man Industries (India) Ltd Earnings Call

August 12, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Man Industries Limited Q1 FY27 earnings conference call. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 1: Ladies and gentlemen, good day and welcome to Man Industries Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prateek Singh from IIFL Capital. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and Welcome to Man Industries Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prateek Singh from IIFL Capital. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during the conference call, please signal the operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Prateek Singh from IIFL Capital. Thank you, and over to you, sir.

Speaker #2: Thanks, Shruti. Good afternoon and welcome, everybody. On behalf of IFL Capital, we invite you to the Man Industries Limited Q1 FY27 earnings conference call.

Prateek Singh: Thanks, Shruti. Good afternoon and welcome everybody. On behalf of IIFL Capital, we invite you to the Man Industries Limited Q1 FY27 earnings conference call. From the management, we have Dr. Ramesh Chandra Mansukhani, Chairman; Mr. Nikhil Mansukhani, MD; Mr. Sandeep Kumar, CFO; Mr. Rahul Rawat, Company Secretary; and Mr. Vijay Gyanchandani, DGM, Investor Relations. I will now hand over the call to the management for their opening remarks. Over to you, gentlemen.

Speaker #2: From the management, we have Dr. Ramesh Mansukhani, Chairman; Mr. Nikhil Mansukhani, Managing Director; Mr. Sandeep Kumar, CFO; Mr. Rahul Dawat, Company Secretary; and Mr. Vijay Ganjandani, DGM, Investor Relations.

Speaker #2: So, without any further ado, we will now hand over the call to the management for their opening remarks. Over to you, gentlemen.

Speaker #3: Thank you, and good afternoon, everyone. This is Nikhil Mansukhani here. On behalf of the entire Man Industries team, I welcome you all to the Q1 FY27 earnings call.

Nikhil Mansukhani: Thank you. Good afternoon, everyone. This is Nikhil Mansukhani. On behalf of the entire Man Industries team, I welcome you all to Q1 FY27 earnings call. A bit of the quarterly highlights. We have started off FY27 well with the highest-ever consolidated quarterly EBITDA. This is mainly led by our optimized product and geographic mix and continued deepening of our global order pipeline. Consolidated revenue growth was the strongest year-on-year revenue growth in the last five quarters. If I take only core pipe business, this is the strongest YoY growth in the last eight quarters, while consolidated PAT more than doubled YoY. Our consolidated order book stands at approximately INR 3,600 crores across India and Saudi Arabia, with the majority executable order over the next six to 12 months, giving us a strong revenue visibility into the rest of FY27.

Speaker #3: A bit of the quarterly highlights. We have started off FY27 well, with the highest-ever consolidated quarterly EBITDA. This is mainly led by an optimized product and geographic mix, and continued deepening of our global order pipeline.

Speaker #3: Consolidated revenue growth was the strongest year-on-year revenue growth in the last five quarters. If I take only the core pipe business, this is the strongest year-on-year growth in the last eight quarters.

Speaker #3: While consolidated pack more than doubled YOI. Our consolidated order book stands at approximately $3,600 crores across India and Saudi Arabia, with the majority executed order over the next six to twelve months.

Speaker #3: This gives us strong revenue visibility into the rest of FY27. Beyond that, our combined bid pipeline stands at approximately ₹24,000 crores, giving us a substantial base for future order inflows.

Nikhil Mansukhani: Beyond that, our combined bid pipeline stands at approximately 24,000 crores, giving us a substantial base for future order inflows. Industry demand outlook. Basically stepping back from the numbers for a moment, I want to share our view on where demand is headed and how we see ourselves placed within it. What we are seeing across our markets is not a one-off upcycle, it is a structural multi-year shift. Governments and national oil companies are investing to secure and diversify their energy supply, to build out water and desalination infrastructure for growing populations, and to industrialize their economies through gigawatt projects and dedicated manufacturing clusters. That is a very different demand profile from the project-to-project cyclicity this industry has historically lived with, and we think it favors companies with a genuine scale, local presence, and long-standing customer relationships over pure-play exporters.

Speaker #3: Industry demand outlook—basically, stepping back from the numbers for a moment, I want to share our view on where demand is headed and how we see ourselves placed within it.

Speaker #3: What we are seeing across our markets isn't a one-off upcycle. It's a structural, multi-year shift. Governments and national oil companies are investing to secure and diversify their energy supply, to build out water and desalination infrastructure for growing populations, and to industrialize their economies through gigawatt projects and dedicated manufacturing clusters.

Speaker #3: That's a very different demand profile from the project-to-project cyclicality this industry has historically lived with, and we think it favors companies with genuine scale, local presence, and long-standing customer relationships over pure-play exporters.

Speaker #3: Ramco's network expansion, water transmission projects, the expansion of east-west pipeline, rehabilitation program, masterclass system expansion, along with parallel wave of water and desalination investments, are all translating into tangible and executable pipes opportunities.

Nikhil Mansukhani: Aramco's network expansion, water transmission projects, the expansion of East-West Pipeline rehabilitation program, Master Gas system expansion, along with parallel wave of water and desalination investments are all translating into tangible and executable pipe opportunities. Saudi Arabia's infrastructure pipeline includes significant investments across oil and gas transmissions, water desalination, and large-scale development projects. What gives us particular confidence in the breadth of demand across multiple end markets and projects rather than dependence on any single project or customer. This diversification, combined with the kingdom's long-term infrastructure ambition, provides us with strong multi-availability and compelling platform for sustained growth in Saudi Arabia. The traction is visible across nearly every region. We track not just Saudi Arabia.

Speaker #3: Saudi Arabia's infrastructure pipeline includes significant investments across oil and gas, gas transmissions, water, desalination, and large-scale development projects. What gives us particular confidence is the breadth of demand across multiple end markets and projects, rather than dependence on any single project or customer.

Speaker #3: This diversification, combined with the Kingdom's long-term infrastructure ambitions, provides us with strong multi-year visibility and a compelling platform for sustained growth in Saudi Arabia.

Speaker #3: The traction is visible across nearly every region. We track not just Saudi Arabia, in the wider MENA and GCC, the post-conflict environment is, if anything, accelerating investment procedures producers like ADNOC, Qatar Energy, are pushing ahead with expansion, and government-backed water and gas programs are continuing regardless of the near-term shipping disruptions.

Nikhil Mansukhani: In the wider MENA and GCC, the post-conflict environment is, if anything, accelerating investment producers like ADNOC, QatarEnergy are pushing ahead with expansion, and government-backed water and gas programs are continuing regardless of the near-term shipping disruptions. In Southeast Asia, we are seeing a genuine second wave of pipeline investments from Indonesia, Vietnam, and Malaysia, all expanding gas transmission and energy import infrastructure and Asian governments collectively targeting to close a trillion-dollar energy infrastructure investment over the coming years. Across the broader Far East and Asia-Pacific, the Strait of Hormuz disruption has had an unusual side effect because roughly 80% of the crude oil and nearly 90% of LNG that transits through the strait is destined for Asian buyers.

Speaker #3: In Southeast Asia, we are seeing a genuine second wave of pipeline investments from Indonesia, Vietnam, and Malaysia, all expanding gas transmission and energy import infrastructure. Asian governments are collectively targeting to close a trillion-dollar energy infrastructure investment over the coming years.

Speaker #3: Across the broader Far East and Asia-Pacific, the Strait of Hormuz disruption has had an unusual side effect, because roughly 80% of the crude oil and nearly 90% of LNG that transits through the strait is destined for Asian buyers.

Speaker #3: Countries such as Japan, Korea, Vietnam, Bangladesh, and the Philippines are now urgently diversifying their supply chains, locking in long-term contracts with non-Gulf producers, and expanding energy import and distribution infrastructure to reduce concentration risk.

Nikhil Mansukhani: Countries from Japan, Korea, Vietnam, Bangladesh, and Philippines are now urgently diversifying their supply chain, locking in long-term contracts with non-Gulf producers, and expanding energy import and distribution infrastructure to reduce their concentration risk. That is a genuinely new structural tailwind for pipe demand in the region, one that did not really exist 18 months ago. With National Pipe Company, we have moved from being an exporter into Saudi Arabia to being in kingdom manufacture. With Aramco-approved vendor status, our upcoming facility, the coating and double jointing facility, deepens that local value chain and value-added product. Our Jammu project extends our capability at home into a new higher-margin stainless steel segment. All Royal Ark Core India business continues to benefit from countries' own water and gas infrastructure build-out.

Speaker #3: That's a genuinely new structural tailwind for pipe demand in the region—one that didn't really exist 18 months ago. With national pipe companies, we've moved from being an exporter into Saudi Arabia to being an in-kingdom manufacturer.

Speaker #3: With the Ramco-approved vendor status, our upcoming coating and double-jointing facility deepens the local value chain and value-added product offering. A Jumbo project expands and extends our capability at home into a new, higher-margin stainless steel segment, all while our core India business continues to benefit from the country's own water and gas infrastructure build-out.

Speaker #3: Put together, we now have a genuinely diversified platform spanning geographies and end markets, rather than a concentrated bet on a single region or commodity cycle.

Nikhil Mansukhani: Put together, we now have a genuinely diversified platform spanning geographies and end markets rather than concentrated bet on a single region or a commodity cycle. On the business development front on NPC, having completed the acquisition of NPC, our teams have made strong progress in integration, take over, and we expect the Saudi operation to ramp up meaningfully from Q2 FY27. This gives us confidence in significantly stronger and more complete contribution from the platform going forward. On our upcoming Dammam coating and double jointing facility, this further strengthens our integrated manufacturing value-added processing capabilities in Kingdom, with operations targeted to commence by March 2027. On our Jammu greenfield stainless project, construction remains on track with production expected by March 2027. A little bit on our real estate Marino Shelters. The monetization is already in process.

Speaker #3: On the business development front, on NPC, having completed the acquisition of NPC, our teams have made a strong progress in integration, takeover, and we expect the Saudi operation to ramp up meaningfully from Q2 FY27.

Speaker #3: This gives us confidence in a significantly stronger and more complete contribution from the platform going forward. On our upcoming demand coating and double-jointing facility, this further strengthens our integrated manufacturing and value-added processing capabilities in the Kingdom, with operations targeted to commence by March 27.

Speaker #3: On our Jumbo Greenfield stainless project, construction remains on track with production expected by March 27. A little bit on our real estate Merino Shelters.

Speaker #3: The monetization is already in process. We have now also received the commencement certificate for the entirety of the project, along with the RERA registrations.

Nikhil Mansukhani: We have now also received the commencement certificate for the entirety of the project along with the Real Estate (Regulation and Development) Act registrations. The project is set to launch around mid of September and this would further bring in the cash revenues to the company in FY27. I would like to hand over the call to CFO, Mr. Sandip Kumar.

Speaker #3: And the project is set to launch around mid-September. This would further bring in cash revenues to the company in FY27.

Speaker #3: I would now like to hand over the call to our CFO, Mr. Sandeep Kumar Garg. Sandeep, over to you.

Speaker #2: Oh, thank you, Nikhil. Good afternoon, everyone. Thanks for joining us for the discussion on our Q1 FY27 financial performance. Let's start with the key financial highlights.

Sandeep Kumar: Thank you, Nikhil. Good afternoon everyone. Thanks for joining us for the discussion on our Q1 FY27 financial performance. Let's start with the key financial highlights. On a standalone basis, revenue grew 37.5% year on year to INR 1,028 crore. EBITDA grew 95.1% year on year to INR 157 crore with EBITDA margin expanding 450 basis point to 15.3%. PAT more than doubled year on year up to 167.7% to INR 78 crore. Our highest ever standalone quarterly PAT we have achieved with PAT margin expanding 370 basis point to 7.6% is also a record for the company.

Speaker #2: On a standalone basis, revenue grew 37.5% year on year to ₹1,028 crore. EBITDA grew 95.1% year on year to ₹157 crore, with EBITDA margin expanding 450 basis points to 15.3%.

Speaker #2: At more than double year-on-year, up 167.7% to ₹78 crore, our highest ever standalone quarterly PAT, we have achieved. This PAT margin, expanding 370 basis points to 7.6%, is also a record for the company.

Speaker #2: On a consolidated basis, we delivered our highest ever consolidated quarterly EBITDA of ₹155 crore, which is up 92.6% year-on-year and 5% quarter-on-quarter, driven by the strategic optimized product and geographic mix, and continued deepening of our global order pipeline.

Sandeep Kumar: On the consolidated basis, we delivered our highest ever consolidated quarterly EBITDA of INR 155 crore, which is up 92.6% year on year and 5% quarter on quarter driven by the strategic optimized product and geographic mix and continued deepening of our global order pipeline. Consolidated revenue for the operation grew 37.7% year on year to INR 1,065 crore while consolidated PAT more than doubled year on year to INR 61 crore underscoring the operating momentum we carry into rest of FY27. As all of you know that we have acquired National Pipe Company Limited in the current quarter and acquisition date was 21 May. So only some part of revenue has come into current quarter and from the next quarter full quarter revenue will be reflecting in the results.

Speaker #2: Consolidated revenue for the operation grew 37.7% year-on-year to ₹1,065 crore, while consolidated PAT more than doubled year-on-year to ₹61 crore.

Speaker #2: Underscoring the operating momentum we carry into the rest of FY27. As all of you know, we have acquired National Pipe Company in our current quarter, and the acquisition date was 21st May.

Speaker #2: So, only a part of the revenue has come into the current quarter, and from the next quarter, the full quarter revenue will be reflected in the results.

Speaker #2: So, as per our guidance, we have given around ₹1,500 crore as the revenue for the NPC in the current FY26. Merino Shelter also, as Mr. Nikhil ji just mentioned, has received prior certification, and the project is getting launched.

Sandeep Kumar: As per our guidance, we have given around INR 1,500 crore should be the revenue for the National Pipe Company Limited in this current FY26. Marino Shelters also, as Mr. Nikhil just mentioned, has got the fire certification received and the project is getting launched next month. We are anticipating INR 35 crore to INR 50 crore cash inflows in this current financial year. With this, we open the floor for questions. Thank you.

Speaker #2: Next month, we are anticipating cash inflows of ₹35 to ₹50 crore in this current financial year. With this, we open the floor for questions.

Speaker #3: Thank you.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Viraj from MoneyGrow. You may proceed.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Viraj from MoneyGrow. You may proceed.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Viraj from MoneyGro. You may proceed.

Speaker #4: Hi, Nikhil. Mr. Gupta, congratulations—fantastic results, and good to see NPC numbers coming through. Two quick questions. One is on your press release: I wanted to reconcile a disconnect between your standalone and consolidated performance.

[Company Representative] (MoneyGrow): Hi Nikhil, Mr. Gupta, congratulations! Fantastic results and good to see National Pipe Company Limited numbers coming through. Two quick questions is one on your press release. I wanted to reconcile a disconnect between your standalone and consolidated performance. So till the EBITDA line, the number for Q1 is roughly the same. However, at the PBT and the PAT level, the number is lower at consolidated versus standalone reflecting a PAT of INR 61 crore in consolidated versus INR 78 crore in standalone. Can you explain what is happening there?

[Analyst] (MoneyGrow): Hi Nikhil, Mr. Gupta, congratulations! Fantastic results and good to see National Pipe Company Limited numbers coming through. Two quick questions is one on your press release. I wanted to reconcile a disconnect between your standalone and consolidated performance. So till the EBITDA line, the number for Q1 is roughly the same. However, at the PBT and the PAT level, the number is lower at consolidated versus standalone reflecting a PAT of INR 61 crore in consolidated versus INR 78 crore in standalone. Can you explain what is happening there?

Speaker #4: So till the EBITDA line, the number for Q1 is roughly the same. However, at the PBT and the PAT level, the number is lower at consolidated versus standalone.

Speaker #4: Reflecting a PAT of ₹61 crore in consolidated versus ₹78 crore in standalone. Can you explain what's happening there?

Speaker #2: Yeah, sure. That's a very good question. As you know, Man Industries, as a standalone company, has given intercompany deposit loans for the Saudi acquisition as well as the Jumbo Project, MSC.

Sandeep Kumar: Yeah, sure. It is a very good question where, as you know that Man Industries as a standalone company has given intercompany deposits loan for the Saudi acquisition as well as the Jammu project MSFA.

Speaker #2: So all those incomes, which are the inter-corporate income and corporate guarantee commission, which are treated as income on a standalone basis, get nullified when we do the consolidation.

[Company Representative] (MoneyGrow): Right.

[Analyst] (MoneyGrow): Right.

Sandeep Kumar: So all those income which is the intercorporate income, corporate guarantee commission which is treated as an income at the standalone basis gets nullified when we do the consolidation. I think when our business is growing and looking forward at Saudi operations consolidated number which you should look at which gives the correct picture of the company.

Speaker #2: So, I think when our business is growing and looking forward at Saudi operations, the consolidated numbers are what you should look at, as they give a correct picture of the company.

[Company Representative] (MoneyGrow): Understood. These intercorporate deposits will be repaid by these various entities to standalones over time that will normalize a little bit.

[Analyst] (MoneyGrow): Understood. These intercorporate deposits will be repaid by these various entities to standalones over time that will normalize a little bit.

Speaker #4: Understood. And these inter-corporate deposits will be repaid by these various entities to the standalones over time, and that will normalize a little bit?

Speaker #2: Over the period, this will be paid back.

Sandeep Kumar: Over the period this will be paid back.

Speaker #4: Understood. Thank you. My second question is again regarding your press release where, in the first quarter, you have done ₹1,000 crore of top line.

[Company Representative] (MoneyGrow): Understood. Thank you. My second question is again regarding your press release where in the Q1 you have done INR 1,000 crores of top line. You have a INR 3,600 crore order book which is executable over six to 12 months which takes you into mid next year. But you give a revenue guidance of INR 5,000 crores. Again, can you reconcile that because unless we win a good amount of orders fairly soon with a six-month exit. Sorry.

[Analyst] (MoneyGrow): Understood. Thank you. My second question is again regarding your press release where in the Q1 you have done INR 1,000 crores of top line. You have a INR 3,600 crore order book which is executable over six to 12 months which takes you into mid next year. But you give a revenue guidance of INR 5,000 crores. Again, can you reconcile that because unless we win a good amount of orders fairly soon with a six-month exit. Sorry.

Speaker #4: You have a ₹3,600 crore order book, which is executable over 6 to 12 months, taking you into mid next year. But you are giving a revenue guidance of ₹5,000 crore.

Speaker #4: Again, can you reconcile that? Because unless we win a good amount of orders fairly soon, within a six-month exec—sorry.

Speaker #2: Oh, if you see, we've given this as on August. So, a certain part of July—full July—is already accounted, already executed.

Sandeep Kumar: If you see we have given this as on August so certain part of July full July is already executed.

[Company Representative] (MoneyGrow): Understood. So that is the gap.

[Analyst] (MoneyGrow): Understood. So that is the gap.

Speaker #4: Understood. So that's the gap.

Speaker #2: And plus, there are some orders we have already received, but we normally announce it once we cross ₹500 crores.

Sandeep Kumar: Plus there are some orders we have already received but we normally announce it once we cross 500 crore.

Speaker #4: Okay, fantastic. Thank you. All the best.

[Company Representative] (MoneyGrow): Okay, fantastic. Thank you. All the best.

[Analyst] (MoneyGrow): Okay, fantastic. Thank you. All the best.

Speaker #1: Thank you. The next question is from the line of Dixie Jain from Incred Resort. Please proceed.

Operator 2: Thank you. The next question is on the line of Dikshi Jain from InCred Research. Please proceed.

Operator: Thank you. The next question is on the line of Dikshi Jain from InCred Research. Please proceed.

Speaker #5: Hi, thank you for taking the question. My first question is regarding the numbers of NPC consolidated into Man Industries. Can you give us an idea of what was the revenue portion for NPC that has been consolidated, and how many days is this consolidation for in the first quarter?

Dikshi Jain: Hi. Thank you for taking the question. My first question is regarding the numbers of NPC consolidated into Man Industries. Can you give us an idea what was the revenue portion for NPC that has been consolidated, and how many days is this consolidation for in the first quarter?

Speaker #2: Yeah, the total revenue is hardly for 15–20 days, as we took over the company on the 21st of May, and there was an Eid holiday.

Nikhil Mansukhani: Yeah.

Sandeep Kumar: Actually, it is hardly 15, 20 days number. As we taken over company on 21 May, and there was an Eid holiday. So around 15 days, there was no work. Saudi was completely closed. So they opened on the first week of June. So around 20 days number, which we have consolidated, is around INR 43 crore revenue has come in this period.

Speaker #2: So, around 15 days, there was no work. Saudi was completely closed. They opened in the first week of June. So, around 20 days, the number we have consolidated is around ₹43 crore revenue has come in.

Speaker #2: In this period.

Speaker #5: Okay. So on a standalone basis, according to the last presentation, the NPC company had higher EBITDA margins than Man Industries standalone. How did it happen that for this quarter, the consolidated numbers became dilutive after consolidation?

Dikshi Jain: Okay. On standalone basis, according to the last presentation, NPC company had higher EBITDA margins than Man Industries standalone. How did it happen that for this quarter, the consolidated numbers, it became dilutive after consolidation?

Speaker #2: No, the numbers diluted in the sense you mean to say the profit? Like Sandeep just said before this question, that the loans given get countered, right?

Nikhil Mansukhani: No. The numbers diluted in the sense you mean to say the profit? Sandip just said before this question, that the loans given get counter, right?

Speaker #2: Because

Dikshi Jain: I am talking about the EBITDA margin. On standalone, they are at 15.3, but consolidated EBITDA margins are at 14.6.

Speaker #5: I'm talking about the EBITDA margins. On a standalone basis, they are at 15.3%, but consolidated EBITDA margins are at 14.6%.

Speaker #2: Yes. So basically, because the revenue is not much, that's why the EBITDA margins are not higher for those particular days for NPC.

Nikhil Mansukhani: Yes. Basically, because the revenue is not much, that is why the EBITDA margins are not higher for those particular days for NPC.

Speaker #5: Okay.

Dikshi Jain: Okay.

Speaker #2: The EBITDA margin for NPC is still higher—almost 21%, which NPC is operating at. But as I told you, only a small portion of that income has come into consolidation.

Sandeep Kumar: EBITDA margin for NPC is still higher.

Sandeep Kumar: EBITDA margin for NPC is still higher. Almost at 21%, which NPC is operating. As I told you, only a small portion of that income has come into consolidation. From the next quarter onward, you will see the full flavor of NPC Saudi operation into our results.

Sandeep Kumar: Almost at 21%, which NPC is operating. As I told you, only a small portion of that income has come into consolidation. From the next quarter onward, you will see the full flavor of NPC Saudi operation into our results.

Speaker #2: From the next quarter onward, you will see the full impact of the NPC Saudi operation reflected in our results.

Speaker #5: Okay, my next question, lastly, is regarding gross margin and other expenses. The gross margin quarter-on-quarter has come down significantly. Is this because of an order which was lumpy in nature that caused the gross margins to drop?

Dikshi Jain: Okay. My next question, lastly, the question regarding, one, gross margin and other expenses. The gross margin quarter-on-quarter has come down significantly. Is this because of an order which was lumpy in nature that caused the gross margins to drop? Other expenses has also come down significantly this quarter as a percentage of the revenue. Can you explain here, what is the difference?

Speaker #5: And other gross margins have dropped. Also, other expenses have come down significantly this quarter as a percentage of revenue. So, can you explain what is the difference?

Speaker #2: Regarding other expenses, as you know, we were doing some DDP businesses, so the composition of orders changes every quarter depending on which project we are implementing.

Sandeep Kumar: Regarding other expenses, as you know that we were doing some DDP businesses. The composition of quarter changes every quarter depending on which project we are implementing. That has reduced the total other expenses. As far as gross profit is concerned, I don't think there's a much change from the last quarter.

Speaker #2: So that has reduced the total other expenses. As far as gross profit is concerned, I don't think there's much change. From the last quarter, gross margin in...

Dikshi Jain: Gross margin in this quarter is 35%. Last quarter, it was at 53%. There's a significant change for margin.

Speaker #5: This quarter is 35%; last quarter it was at 53%. So there's a significant change for margin.

Speaker #2: On this point, I will come back to you. I will have your answer on this one; I will come back to you on this point.

Sandeep Kumar: This point I will come back to you. I have your this one, I will come back to you on this one.

Speaker #5: Yeah, sure. Thank you for that. The only reason.

Dikshi Jain: Yeah. Sure. Thank you for-

Dikshi Jain: Yeah. Sure. Thank you for [inauddible]

Sandeep Kumar: The only reason, but if you look at our PAT and PBT, all those numbers are better because what has happened that DDP orders have changed from DDP to other mode of order module. Revenue and expenses both has come down, but net profits are increased.

Speaker #2: But if you look at our PAT and PBT, all those numbers are better because what has happened is that DDP orders have changed—some from DDP to other modes of order module.

Speaker #2: So, revenue and expenses have both come down, but net profit has increased.

Speaker #5: Okay, okay. I'll get back to you regarding this. Thank you for taking the question.

Dikshi Jain: Okay. Okay. I will get back to you regarding this. Thank you for taking the question.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star one to ask a question.

Operator 2: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Ganesh Rao from Purnarvi Capital. Please proceed.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Ganesh Rao from Purnarvi Capital. Please proceed.

Speaker #1: The next question is from the line of Ganesh Rao from Punavi Capital. Please proceed.

Speaker #3: Thank you for the opportunity. Team, great set of numbers. My first question is on the capacity utilization for NPC, right? It revolves around that.

Ganesh Rao: Thank you for the opportunity. Team, great set of numbers. My first question is on the capacity utilization for NPC, right? It revolves around that. You said that NPC will start ramping up meaningfully from the next quarter. Is it possible for you to give us what will be the quarterly run rate going into FY27 end? What will be the utilization levels that you are targeting by March 2027?

Speaker #3: You said that NPC will start, you know, ramping up meaningfully for the next quarter. So is it possible for you to give us, like, what would be the quarterly run rate going into FY27 end?

Speaker #3: And what would be the utilization levels that you're targeting by March 27?

Speaker #2: Capacity utilization is approximately when you talk about India is around 50%, 50 to 60%. And NPC quarterly run rate from Q2, we are assuming between any time between 300 to 500 crores 3 to 4 to 3 to 500 crores.

Nikhil Mansukhani: Capacity utilization is approximately, when you talk about India, is around 50%, 50% to 60%. NPC quarterly run rate from Q2, we are assuming anytime between INR 300 to INR 500 crores, INR 300 to INR 500 crores. This could be the quarterly run rate. Then we are obviously ramping it up for the new businesses which are coming up from December in Saudi.

Speaker #2: This could be the quarterly run rate. And then we are obviously ramping it up for the new businesses which are coming up from December in Saudi.

Speaker #3: Okay. And at this—okay, so on the margin side, sir, NPC had reported roughly around 25%, but our understanding is that we’ll be kind of normalizing towards the 15 to 18% margins at a consolidated level, right?

Ganesh Rao: Okay. On the margin side, sir, NPC had reported roughly around 25%, but our understanding is that we will be kind of normalizing towards the 15% to 18% margins at a consolidated level, right? What specifically causes this normalization, and what would you need to do to make NPC to kind of go back to the 20% margin levels eventually?

Speaker #3: Like what what specifically kind of causes this normalization and what would you you know, what would you need to do to make NPC to kind of go back to the 20% margin levels eventually?

Speaker #2: No, no. This is consolidated margin we are talking about—between 14% and 15%. So, in a general sense of the design mix of the business, you don't always get all the businesses with coating, or bends, or double joints.

Nikhil Mansukhani: No, no. This is consolidated margin we are talking about between 14% and 15%. General sense of design mix of the business, you do not always get all the businesses with coating or bends or double joints. There are a lot of value-added business when you get a single order, but every time the same is not the case. That is the reason why we have said that on a consolidated level now we will be consistently delivering higher EBITDA numbers and higher PATs. NPC will perform between 15% to 18%, and we will try and take more orders from Aramco because the EBITDA margins and profit are slightly higher and lesser towards water. That is always our first focus, that the more Aramco orders you take, the profitability is higher. Then we take the water orders.

Speaker #2: There are a lot of value-added businesses when you get a single order. But every time, that is not the case, you know.

Speaker #2: That's the reason why we've said that, on a consolidated level, now we will be consistently delivering higher EBITDA numbers and higher PAT, as NPC will perform between 15% to 18%.

Speaker #2: And we will try and take more orders from Aramco because EBITDA margins and profits are slightly higher, and they are lesser towards water. So that is always our first focus: the more Aramco orders you take, the higher the profitability.

Speaker #2: And then we take the water orders, so that can push up the profit to almost 20 plus percent.

Nikhil Mansukhani: That can push up the profit up to almost up to 20-plus percent.

Speaker #3: Perfect. Yep. Okay. Thank you, sir. The next question that I had was like you you kind of alluded to it, but like what percentage of NPC's current order book is or contains quoted quoted or double joint ones?

Ganesh Rao: Perfect. Okay. Thank you, sir. The next question that I had was, you kind of alluded to it, but what percentage of NPC's current order book is, or contains coated or double joints ones, and how much can potentially be converted into pipe plus coating order from your existing pipeline?

Speaker #3: And how much can potentially be converted into, like, five plus quoting order from your existing pipeline?

Speaker #2: You know, currently NPC doesn't have the quoting orders because currently NPC is only a bare pipe manufacturing unit. So, there's nothing alluded. Basically, it is bare pipes with which we are executing the orders of Aramco and water orders.

Nikhil Mansukhani: No. Currently, NPC does not have the coating orders because currently NPC is only a bare pipe manufacturing unit. There is nothing alluded. Basically, it is bare pipes, which we are executing the orders of Aramco and water orders. Currently, NPC does not have the coating facility. It is under construction, if you see, and it would be up and running by March. Post that, we are hopeful that we would be getting the coating and the double jointing orders from Aramco and the other vendors.

Speaker #2: Currently, NPC doesn't have the quoting facility; it's under construction. If you see, it should be up and running by March. And after that, we are hopeful that we will be getting the quoting and the double jointing orders from Aramco and other vendors.

Speaker #3: Okay, so within this set, you see some potential for what NPC orders today to eventually also get quoting orders in the future, right?

Ganesh Rao: Okay. So within this set, you see some potential of what NPC orders today will eventually also get coating order in the future, right? What kind of percentage would you ballpark it around, sir?

Speaker #3: So, what kind of percentage would you ballpark it around, sir?

Speaker #2: No, all the orders which are there are quoted. So once the quoting mill is up, you will start getting the quoting, the double jointing, and the pipe making, because all the pipes are 24 meters over there, which are else.

Nikhil Mansukhani: No, all the orders which are there are coated. Once the coating mill is up, you will start getting the coating, the double jointing, and the pipe making, because all the pipes are 24 meters over there, which are LSAW. Aramco gives the order 12-meter pipes, which you have to DJ compulsory, and then you compulsory coat it 24 meters. So we are hopeful that we will get the entire packages. It should be all the packages. If you get the pipe, you should be getting the coating orders as well.

Speaker #2: So Aramco gives the order for 12 twelve-meter pipes, which you have to DJ compulsorily, and then you compulsorily quoted 24 meters. So we are hopeful that we will get the entire package.

Speaker #2: And we should be getting all the packages to get the pipe. You should be getting the quoting orders as well.

Speaker #3: Awesome. Okay. Thank you. And one last question is more more broader demand based question demand and capacity. Like with many of our competitors like you know Wellspun, East Pipes are Arabian Pipes and other players adding capacity in Saudi Arabia.

Ganesh Rao: Awesome. Okay, thank you. One last question is a more broader demand-based question, demand and capacity. With many of our competitors like Welspun, East Pipes, Arabian Pipes, and other players adding capacity in Saudi Arabia, how do you see the industry capacity versus the demand over the next 2 to 3 years? Do you expect utilization or pricing to become a problem or a constraint for us?

Speaker #3: How do you see the industry capacity versus the demand over the next two to three years? Do you expect utilization or pricing to become a problem or a constraint for us?

Speaker #2: Currently, there is a shortfall between demand and supply. So, supply is lower and demand is higher, and we expect this to continue for the next three to four years.

Nikhil Mansukhani: Currently, there is a shortfall between demand and supply. So supply is lower and demand is higher. We expect this to continue for the next 3 to 4 years. Looking at the current, with the war scenario and everything, a lot of new projects, the East-West Pipeline, the Master Gas expansion. So we do not see any problem as such for the next 3 years. Post 3 years, I cannot say. I do not know if any other nuclear is coming, but what we are aware about, we do not see any demand-supply issue as of now.

Speaker #2: Looking at the current, you know, with the war scenario and everything, a lot of new projects—the East-West line, the master gas expansion—so we do not see any problem as such.

Speaker #2: For the next three years—post three years, I can't say. I don't know if any other new player is coming, but what we are aware of, we don't see any demand-supply issue as of now.

Speaker #3: Thank you. Thank you, sir. I'll get back in the queue if I have any follow-up questions.

Ganesh Rao: Thank you, sir. I will get back in the queue if I have any follow-up questions.

Speaker #2: Thank you.

Nikhil Mansukhani: Thank you.

Speaker #1: Thank you. The next question is from the line of Darshan Saveri from Crown Capital. Please proceed.

Operator 2: Thank you. The next question is from the line of Darshan Zaveri from Crown Capital. Please proceed.

Operator: Thank you. The next question is from the line of Darshan Zaveri from Crown Capital. Please proceed.

Speaker #4: Hello. Good evening, sir. Thank you so much for taking my question. Firstly, congratulations on a really great set of numbers, sir. Sir, just a question, sir.

Darshan Zaveri: Hello, good evening, sir. Thank you so much for taking my question. Firstly, congratulations on the really great set of numbers, sir. Sir, just a question, sir. So now by March 2027, I think the Haman plant and Jammu plant will come online. So in terms of FY28, how do we look at that, sir, in terms of guidance, sir?

Darshil Jhaveri: Hello, good evening, sir. Thank you so much for taking my question. Firstly, congratulations on the really great set of numbers, sir. Sir, just a question, sir. So now by March 2027, I think the Haman plant and Jammu plant will come online. So in terms of FY28, how do we look at that, sir, in terms of guidance, sir?

Speaker #4: So now, by March 27, I think our Dhamam plant and Jammu plant will, you know, come online. So, in terms of FY28, how do we look at that, sir, in terms of guidance?

Speaker #2: So, we would be doing approximately 25% to 30% growth.

Nikhil Mansukhani: We would be doing approximately 25% to 30% growth.

Darshan Zaveri: That would mean base, but even Jammu would come in, right? That would push it further or how?

Darshil Jhaveri: That would mean base, but even Jammu would come in, right? That would push it further or how?

Speaker #4: That would mean base business, but even Jammu would come in, right? So that would push it further, or how?

Speaker #2: So, but Jammu will not straight away give a top line of ₹1,000 or ₹2,000 crores. Jammu would be an addition of probably ₹200 to ₹300 crores because we've considered 25% to 30% of revenue in the first year.

Nikhil Mansukhani: Jammu will not straight away give a top line of INR 1,000 crores, INR 2,000 crores. Jammu would be an addition of probably INR 200 crores to INR 300 crores because we have considered 25% to 30% of revenue in the first year.

Speaker #2: So yes, it will be scaled up eventually, and I'm saying this would be the minimum growth—25 to 30 percent. And then, if things go well, it could be higher.

Darshan Zaveri: Okay.

Darshil Jhaveri: Okay.

Nikhil Mansukhani: Yes, so it will be scaled up eventually, and I am saying this would be the minimum growth, 25% to 30%. Then if things go well, it could be higher.

Speaker #4: Okay. Okay. No, fair enough, sure. And sir, I just wanted to know, like when you said the demand is not an issue, but in terms of competition, how do we look at it right now?

Darshan Zaveri: Okay. Fair enough, sir. Just wanted to know, when you say that demand is not an issue, but in terms of competition, how do we look at it right now? There are some players trying to get a plant in Saudi. Maybe not this year, but they are going to come up by maybe next year or next year end. In terms of competition, how do you look at it? Is the competitive intensity increasing? How do we mitigate that, sir? Does it become more like a price war or how do we mitigate it?

Darshil Jhaveri: Okay. Fair enough, sir. Just wanted to know, when you say that demand is not an issue, but in terms of competition, how do we look at it right now? There are some players trying to get a plant in Saudi. Maybe not this year, but they are going to come up by maybe next year or next year end. In terms of competition, how do you look at it? Is the competitive intensity increasing? How do we mitigate that, sir? Does it become more like a price war or how do we mitigate it?

Speaker #4: There are some players trying to get a plant in Saudi. So maybe not this year, but they're going to come up by maybe next year or next year-end.

Speaker #4: So in terms of competition, how do you look at it? Is the competitive intensity kind of increasing, and how do we mitigate that, sir?

Speaker #4: Does it become more like a price war, or how do we mitigate it?

Nikhil Mansukhani: The thing is currently, even two years down the line, there is a demand-supply gap according to us. Obviously the newer players will start, some of them will start next year, and some of them will start the year after. But the approvals, the API approvals, everything will come. But we still do not see a demand-supply massive gap. Yes, there might be some pressure on the price. That is always the case. But it is not like a price war like you are saying. There is still enough gap in demand-supply yet, so we do not see any issues.

Speaker #2: The the thing is currently even two years down the line, there is a demand supply gap according to us. And obviously the newer players will start some of them will start next year and the the some of them will start the year after.

Speaker #2: But the approvals, the API approvals, everything will come. But we still don't see a massive gap between demand and supply. Yes, there might be some pressure on the price.

Speaker #2: That's always the case, but it is not like a price war, as you're saying. There is still enough gap in demand and supply yet, so we don't see any issues.

Speaker #4: Okay. Okay. And sir, just one bookkeeping question, sir. In terms of money, you know, shelter. So, when we say we expect ₹35 to ₹50 crore cash flow, how would that get recognized in our books?

Darshan Zaveri: Okay. And sir, just one bookkeeping question, sir. In terms of shelter, so when we say we expect 35 to 50 cash flow, so how would that get recognized in our books? Would they just directly flow into PAT via other income or how would it be, sir?

Darshil Jhaveri: Okay. And sir, just one bookkeeping question, sir. In terms of shelter, so when we say we expect 35 to 50 cash flow, so how would that get recognized in our books? Would they just directly flow into PAT via other income or how would it be, sir?

Speaker #4: Would it just directly flow into PAT via other income, or how would it, you know, be, sir?

Speaker #2: Yes, it would go directly into the PAT in the other income. Yeah.

Nikhil Mansukhani: Yes, it would go directly into the PAT in the other income.

Darshan Zaveri: Yes.

Darshil Jhaveri: Yes.

Nikhil Mansukhani: Yeah.

Speaker #4: And would that—would it be lumpy in nature, or how would it, you know, just come? Like, would it come in any quarter, or would it be a steady flow?

Darshan Zaveri: And would it be lumpy in nature? How would it come? It would come in any quarter or it would be steady flow. How would it

Darshil Jhaveri: And would it be lumpy in nature? How would it come? It would come in any quarter or it would be steady flow. How would it [inaudible]?

Speaker #4: How would like if the.

Nikhil Mansukhani: It is real estate, so it would be lumpy. But we are estimating the project timeline is around four to five years for completion, so we have divided the total revenue over six years. So it will be slightly lumpy, but that is why we have given a ballpark between INR 80 to 100 crores. So plus and minus 10%, probably a very good year would probably get you some more revenue, some more income. But principally, I think this is the ballpark which it will be around.

Speaker #2: It's real estate, so it would be lumpy, but we are estimating the project timeline to be around four to five years for completion. So, we've divided the total revenue over six years.

Speaker #2: So it is it will be slightly lumpy, but you would get that's why we've given a ballpark between 80 to 100 crores. So plus and minus 10% of probably a very good year would probably get you some more revenue, some more income.

Speaker #2: So, but principally, I think this is the ballpark which it will be around.

Speaker #4: Okay. Okay. Okay. Thank you. That's it from my side. Thank you so much, sir.

Darshan Zaveri: Okay. Thank you. That is just for my side. Thank you so much, sir.

Darshil Jhaveri: Okay. Thank you. That is just for my side. Thank you so much, sir.

Speaker #1: Thank you. The next question is from the line of Subhatra. Sir, cards from Mount Infra Finance. Please proceed.

Operator 2: Thank you. The next question is on the line of Subrata Sarkar from Mount Elsa Finance. Please proceed.

Operator: Thank you. The next question is on the line of Subrata Sarkar from Mount Elsa Finance. Please proceed.

Speaker #4: Yes, sir, one question only—on the MPG side, basically. So one of our assumptions is, in terms of our business channel and growth, in the case of MPG...

Subrata Sarkar: Yes. Sir, one question on the National Pipe Company Limited side, basically. One of our assumption is like, in terms of our business turnaround and growth in case of National Pipe Company Limited, one option can be-

Speaker #4: One option can be hello.

Nikhil Mansukhani: Hello?

Subrata Sarkar: Hello.

Speaker #2: We cannot send you; our voice is getting cut. Can you wait a little bit?

Nikhil Mansukhani: We cannot understand. Your voice is getting cut. Can you little bit-

Speaker #4: Is it audible now?

Subrata Sarkar: Is it audible now?

Speaker #2: No, no, no. It's still very...

Nikhil Mansukhani: No, it is still very

Speaker #3: Sir, is it audible now? Is it better?

Subrata Sarkar: Okay. Is it audible now?

Nikhil Mansukhani: Yes, better.

Subrata Sarkar: Is it better?

Speaker #2: Yeah, it's better.

Nikhil Mansukhani: Yes, better.

Speaker #3: So, one point is, sir, one of our internal assumptions can be, like, if we—in order to achieve a better margin in MPC—if we can replace our raw material with Chinese steel.

Subrata Sarkar: So one point is like, sir, one of our internal assumption can be like, in order to do a better margin in NPC, if we can replace our raw material through Chinese steel. In that case, since we know there is an IKTVA program where Saudi want to do more internal usage of their own resources, in these circumstances, is it a viable strategy that we can replace some of the steel through Chinese import, and then we can do a better margin? This is one question, and I have got another question, basically.

Speaker #3: So, in that case, since we know there is an IKTVA program where Saudi itself wants to do more internal approvals and internal usage of their own resources.

Speaker #3: So in these circumstances, is it a viable strategy that we can replace some of the steel through Chinese import, and then we can do a better margin?

Speaker #3: This is one question, and I have got another question, basically. Hello?

Nikhil Mansukhani: Hello. Yes. Should I answer or wait for your next question?

Speaker #2: Yes, should I answer or wait for your next question?

Speaker #3: No sir, the next question is on the broader side, sir. We are currently undergoing two or three initiatives: one is MPC, second is GNK, and third is the coating plant.

Subrata Sarkar: No. Sir, next question is on the broader side, sir. We are undergoing two, three initiatives. One is NPC, second is GNK, and third, the coating plant. So what is our managerial preparation to execute all these things simultaneously? What is our bandwidth and is there any in terms of capability, sir, how prepared we are? These are the two questions.

Speaker #3: So, like, what is our managerial preparation to execute all these things simultaneously? What is our bandwidth, and is there any—so in terms of capability—like, sir, how prepared are we?

Speaker #3: These are the two questions.

Speaker #2: Okay. So, Mr. Sarkar, the primary first question is about the replacement of steel in MPC for a better EBITDA to import from China. Today, in Saudi, basically, there are no plate suppliers.

Nikhil Mansukhani: Okay. Mr. Sarkar, the primary first question about replacement of steel and NPC for a better EBITDA to import from China. Today in Saudi, basically, there are no plate suppliers. So there is no question of made in Saudi. Everything is getting imported from POSCO, China, all the countries, wherever we are getting the best and approved vendor in Aramco. We are getting the best possible prices from there and importing the steel. When it comes to HRC, some of the coils are matched by the local Hadeed, and the remaining are also, if required, are imported either again from China, Korea, and everywhere. Wherever the best pricing is, we are getting. So there is no restriction on that by the government, and we are currently sourcing it with the best pricing possibility.

Speaker #2: So there is no question of 'Made in Saudi.' Everything is being imported from POSCO, China, and all the countries where we are able to get the best and approved vendors in Aramco. We are securing the best possible prices from there and importing the steel.

Speaker #2: When it comes to HRC, some of the coils are matched by the local Habib, and the remaining are also, if required, imported—either again from China, Korea, or elsewhere—wherever we are getting the best pricing.

Nikhil Mansukhani: When it comes to HRC, some of the coils are matched by the local Hadeed, and the remaining are also, if required, are imported either again from China, Korea, and everywhere. Wherever the best pricing is, we are getting. So there is no restriction on that by the government, and we are currently sourcing it with the best pricing possibility. The EBITDA margins as per guidelines are because of the best sourcing that we are doing. Yes, some things when we took over. Any question?

Speaker #2: So, there is no restriction on that by the government, and we are currently sourcing it with the best pricing possibility. So, the EBITDA margins, as per guidelines, are because of the best sourcing that we're doing.

Nikhil Mansukhani: The EBITDA margins as per guidelines are because of the best sourcing that we are doing. Yes, some things when we took over. Any question?

Speaker #2: Yes, some things when we took over opportunity.

Speaker #3: Hello?

Subrata Sarkar: Hello.

Speaker #1: Hello. Yes, sir, you can go ahead with your question.

Operator 2: Hello. Yes, sir. You can go ahead with your question.

Operator: Hello. Yes, sir. You can go ahead with your question.

Speaker #3: It's Mr. Sarkar, right? Yes, sir. Sir, I have already asked the question, sir. Yes. Yes, yes, I know. I'm just replying. Line cut गई थी बीच में.

Nikhil Mansukhani: It is Mr. Sarkar, right?

Subrata Sarkar: Yes, sir. Sir, I have already asked the question, sir.

Nikhil Mansukhani: Yes. I know. I am just replying. Line cut between which may.

Speaker #3: So the EBITDA margins, which are currently as per the best possible prices that are sourced—locally as well as internationally. And regarding your question on our execution capabilities for the Saudi coating and Jammu projects, we already have our teams in place.

Subrata Sarkar: Yes.

Nikhil Mansukhani: The EBITDA margins which are currently are as per the best possible prices which are sourced locally as well as internationally. Regarding our execution capabilities for Saudi coating and Jammu, we already have our teams in place. The execution is going on, so we do not find any issues. We have been doing this since many years, including our coating plant and everything. We have a large set of team which is already doing the needful.

Speaker #3: And the execution is going on, so we do not find any issues. We have been doing this for many years, including a coating plant and everything.

Sandeep Kumar: The execution is going on, so we do not find any issues. We have been doing this since many years, including our coating plant and everything. We have a large set of team which is already doing the needful.

Speaker #3: So, we have a large set of teams, which is already doing the needful. Okay. And sir, last question on the CAC—like on the cash flow side, given our capex and other expenditures, basically.

Subrata Sarkar: Okay. Last question on the cash flow side, giving our CapEx and other expenditure, basically, if you can help us to understand what is our plan on a FY27 basis, what kind of cash requirement we have got and how we will make it? FY28 and maybe FY27 and FY28.

Speaker #3: Sir, if you if you can help us to understand like what is our plan to like on a year by 27 basis, what kind of cash requirement we have got and how we will make it.

Speaker #3: If I say 28, and maybe 20. If 27 and 20, sir.

Speaker #2: So, in '27, we are currently taking up two projects. The MPC acquisition is already completed. Then, we are putting up a coating plant in Saudi. That is ongoing, which is around a $50 million investment.

Sandeep Kumar: FY27, we are currently taken up two projects and pre-expedition is already completed. We are putting up a coating plant in Saudi. That is going on, which is around $50 million investment, which will be funded partly by a loan, $25 million. $25 million we will do from our own. Jammu project, which is going on for INR 600 crores. The loan component will be INR 389 crores and balance our component, we have already invested in the project so far.

Speaker #2: Which will be funded partly by loan—₹25 million; ₹25 million we will do from our own. Then, the Jammu project, which is going on for ₹600 crore.

Speaker #2: The loan component will be 389. And the balance, our component, we have already invested in the project so far.

Speaker #3: Is there any other cash flow requirement, sir, in '27 or '28?

Subrata Sarkar: Is there any cash flow requirements, sir, in FY27?

Sandeep Kumar: Nothing. Already the company is at surplus of cash.

Sandeep Kumar: Nothing. [crosstalk] Already the company is at surplus of cash.

Speaker #2: No, nothing. The company is already at a surplus of cash.

Speaker #3: Okay. And sir, any estimate on what could be our peak date, sir, given all those things?

Subrata Sarkar: Okay. Sir, any estimate what can be our peak debt, sir, giving all those things?

Speaker #2: Big date, as in this year?

Sandeep Kumar: Big debt as in this year?

Speaker #3: No. By year, by 28. Yes, sir. Both, sir. Both year. If you have some.

Subrata Sarkar: No, by FY28. Yes, sir. Both, sir. Both years if you have some.

Speaker #2: The total debt will be around 1,600 after all the projects get completed, and all told on.

Sandeep Kumar: Total debt will be around INR 1,600 after all the projects get completed and all draw down.

Speaker #3: That will be by year, by 2028, sir, or like, yeah?

Subrata Sarkar: That will be by FY28, sir?

Sandeep Kumar: It will be lower than that because repayment of loans will start, so it will be lower than that. It is INR 1,400 by FY28.

Speaker #2: Or it will be lower than that because repayment of loans will start, so it will be lower than that. It will be 1,400.

Speaker #3: By year, by '28. Okay. And this year, 1,600, sir—will that be this year or somewhere in between?

Subrata Sarkar: Okay. And INR 1,600, sir, will be this year or in between?

Sandeep Kumar: Yes. This year. They need to complete both the projects. This will be this year. Only condition is that all draw down, everything project completed by March 2027, then this will be the number. This is the maximum number. I will say this is the max loan number.

Speaker #2: Yes, we are projecting to complete both the projects, so this will be this year. The only condition is that all drawdown and everything must be completed by March 27.

Speaker #2: Then this will be the number. Is this the maximum number? I would say this is the max loan number.

Speaker #3: 1,600, sir.

Subrata Sarkar: INR 1,600, sir.

Speaker #2: Yeah.

Sandeep Kumar: Yeah.

Speaker #3: Thank you.

Subrata Sarkar: Thank you.

Speaker #1: Thank you. The next question is from the line of Anuj from InterGlobe Services. You may proceed.

Operator 2: Thank you. The next question is on the line of Anuj from Interglobe Services. You may proceed.

Operator: Thank you. The next question is on the line of Anuj from Interglobe Services. You may proceed.

Speaker #3: Yeah, hi. Congratulations on the great set of numbers. I'm Sally, new to the company, so just a basic question—if you could share the revenue breakup between EDSO, ELSO, ERW, and stainless steel pipes for this quarter and the same quarter last year.

[Analyst] (Interglobe Services): Yeah. Hi. Congratulations on the great set of numbers. I am fairly new to the company, so just a basic question. If you could share basically the revenue breakup between HSAW, LSAW, ERW, and stainless steel pipes for this quarter and the same quarter last year.

Speaker #2: Anuj, you can send us the details. We will see how we can break it up. We don't give those data across like, okay.

Sandeep Kumar: Anuj, you can send us the details. We will see how we can break it up. We do not give those data across lines.

[Analyst] (Interglobe Services): Okay. Just want to know that for the 3LPE coating that is coming up in Saudi Arabia, what is the total capacity of the 3LPE coating that is coming up?

Speaker #3: Okay. And just want to know, for the LT coating that's coming up in Saudi Arabia, what is the total capacity of the LT coating that's coming up?

Speaker #2: 4 lakh square meters per annum.

Sandeep Kumar: 400,000 square meters per annum.

Speaker #3: Okay, okay. And just another question. Basically, you mentioned that the capacity utilization in India is between the 50% to 60% range. So, is that our peak utilization in every quarter, or is it more of an order book issue that we can't push the utilization level higher?

[Analyst] (Interglobe Services): Okay. Just another question. Basically, you mentioned that the capacity utilization in India is between the 50% to 60% range. Is that our peak utilization in every quarter or it is more of an order book issue that we cannot push the utilization level higher?

Speaker #2: No, it's basically the orders, right? So, different types and different sizes of orders. We see where the best fit is in which mill it goes in.

Sandeep Kumar: No. It is basically the orders. So different types and different sizes of orders. So we see where best fit is, in which mill it goes in, and that is. So yeah, it is also a business. So that is why it is 50% to 60%.

Speaker #2: And that way. So, yeah, it's also a business. So that's why it is 50 to 60 percent.

Speaker #3: Got it. And just following up on one of the earlier participants' questions: If I look at FY20 to FY25 as a whole, our gross margins were in the range of 22 percent, which shot up to nearly 38 percent in FY26.

[Analyst] (Interglobe Services): Got it. Just following up one of the earlier participant's questions. If I look at FY20, FY25 on a whole, our gross margins were in the range of 22%, which shot up to nearly 38% in FY27. We see that trend continuing. Just want to understand what is the big change that happened in the business that our gross margins shot up by a huge amount?

Speaker #3: And we see that trend continuing. So, just one question: What is the big change that happened in the business that our gross margins shot up by a huge amount?

Speaker #2: A lot of the business that we got were DAP, you know, delivered at place. And different different value added products. CWC coatings. So we got to add a lot of the different different margins on the varied value add.

Sandeep Kumar: A lot of the business that we got were DAP, delivered at place, and different value-added products, CWC coatings. We got to add a lot of the different margins and variate the value add. That's why it went up.

Speaker #2: So that's why it went up.

Speaker #3: And we see this trend continuing this year and the next year as well?

[Analyst] (Interglobe Services): We see this trend continuing this year and the next year as well?

Speaker #2: Not always, to be honest. It's on a project-to-project basis. But looking at the current scenario in the world, we're seeing a lot more traction and a lot more orders.

Sandeep Kumar: Not always, to be honest. It's project to project basis. But looking at the current scenario in the world, we're seeing a lot more traction and lot more orders. So probably if this trend doesn't continue, your capacity utilization will go up. So either ways, it will go up.

Speaker #2: So probably, if this trend doesn't continue, your capacity utilization will go up. So either way, it will go up.

Speaker #3: Understood. And from and my friend question is from the current India plant, the LTE coating that we have, is approximately approximately 1.5 ton 1.5 lakh tons per annum.

[Analyst] (Interglobe Services): Understood. My final question is, from the current India plant, the 3LPE coating that we have is approximately 1.5 lakh tons per annum. What percent of the order book right now would have 3LPE coating and what is the additional EBITDA margins that we can charge on, let's say, an LSAW pipe with coating and without coating?

Speaker #3: So, basically, approximately what percent of the order book right now would have LTE coating, and what are the additional EBITDA margins that we can charge on, let's say, an ELSO pipe with coating versus without coating?

Speaker #2: No. So basically 3 LP almost 70 to 80 percent of the pipes probably 80 percent plus is with 3 LP coating. But different I can't tell you the EBITDA across right now because all projects are different EBITDAs.

Sandeep Kumar: 3LPE, almost 70% to 80% of the pipes, probably 80% plus is with 3LPE coating. I cannot tell you the EBITDA across right now because all projects are different EBITDAs. Some are with internal and external. Mostly, I think 80%, 85% pipes are coated.

Speaker #2: And some are with internal and external, but mostly, I think 80–85 percent of pipes are coated.

Speaker #3: Okay, okay. Got it. Thank you. Thank you.

[Analyst] (Interglobe Services): Okay. Got it. Thank you. That will be all from my end.

Speaker #2: Yeah. Thank you.

Sandeep Kumar: Yeah. Thank you.

Speaker #1: Thank you. The next question is from the line of Janam Doshi from Chris PMS. Please proceed.

Operator 2: Thank you. The next question is from the line of Jainam Doshi from Trust PMS. Please proceed.

Operator: Thank you. The next question is from the line of Jainam Doshi from Trust PMS. Please proceed.

Speaker #3: Congratulations on a great set of numbers, sir. So, two questions. First is: out of the consolidated order book of ₹3,600 crore, can you help us with the breakup of NPC and India? And specifically for India also, what would be the breakup in terms of domestic and exports?

Jainam Doshi: Congratulations on a great set of numbers, sir. Two questions. First is, out of the consolidated order book of INR 3,600 crore, can you help us with the breakup of NPC and India? Specifically for India also, what would be the breakup in terms of domestic and exports?

Speaker #2: India is around 2,200 to 2,300 crores, and the remaining is with NPC. The breakup in India is, I think, 80-plus percent is again exports.

Nikhil Mansukhani: India is around INR 2,200 to 2,300 crore. The remaining is with NPC. The breakup in India is, I think 80%-plus is again exports, and 20% is domestic.

Speaker #2: And 20 percent is domestic.

Speaker #3: Understood. Understood. And the second one is, after the commencement of the coating facility, how will the realizations and margin profile shape up?

Jainam Doshi: Understood. The second one is, after the commencement of the coating facility, how will the realizations and margin profile shape up?

Speaker #2: This is with the coating facility, which would probably be a few more percentage points up. Once NPC coating starts, the margin profile will definitely kick up by at least 3 to 4 percent.

Nikhil Mansukhani: This is with the coating facility, would be probably few more percentage up once NPC coating starts. So the margin profile will definitely kick up at least 3% to 4%.

Speaker #3: Okay, got it. Thank you. That's it from my side.

Jainam Doshi: Okay, got it. Thank you. That is it from my side, yeah.

Speaker #2: Thank you.

Speaker #1: Thank you. The next question is from the line of Viraj from MoneyGro. Please proceed.

Nikhil Mansukhani: Thank you.

Operator 2: Thank you. The next question is from the line of Viraj from MoneyGrow. Please proceed.

Operator: Thank you. The next question is from the line of Viraj from MoneyGrow. Please proceed.

Speaker #3: Hi Mr. Gupta. Given all the moving parts, particularly on financing for acquisitions, could you indicate a level of finance cost that you expect overall at the consolidated level in the P&L this year?

[Company Representative] (MoneyGrow): Hi, Mr. Gupta. Given all the moving parts, particularly on financing for acquisitions, could you indicate a level of finance cost that you expect overall at the console level in the P&L this year, approximately?

[Analyst] (MoneyGrow): Hi, Mr. Gupta. Given all the moving parts, particularly on financing for acquisitions, could you indicate a level of finance cost that you expect overall at the console level in the P&L this year, approximately?

Speaker #3: Approximately?

Speaker #2: Yeah. If you look at this quarter's numbers, this quarter my finance cost is 30.

Nikhil Mansukhani: Yeah, if you look at this quarter's number, this quarter, my finance cost is 30-

Speaker #3: 39 crores—let's say 40 crores.

[Company Representative] (MoneyGrow): 39 crores. Let's say 40 crores.

[Analyst] (MoneyGrow): 39 crores. Let's say 40 crores.

Speaker #2: 39-40 crores. So, by year-end, I expect my finance cost for the full year will be around 190 crores.

Nikhil Mansukhani: 39, roughly 40 crores.

Sandeep Kumar: Right.

[Analyst] (MoneyGrow): Right.

Sandeep Kumar: So at the year-end, I expect my finance cost full year will be around INR 190.

Speaker #3: Okay. Okay. Helpful. Thank you.

Sandeep Kumar: INR 190. Okay. Helpful. Thank you.

[Analyst] (MoneyGrow): INR 190. Okay. Helpful. Thank you.

Speaker #2: Thank you.

Sandeep Kumar: Thank you.

Speaker #1: Thank you. The next question is from the line of Karved Goel from 7 Alpha. Thank you.

Operator 2: Thank you. The next question is on the line of Garvit Goel from Seven Alpha. Thank you.

Operator: Thank you. The next question is on the line of Garvit Goel from Seven Alpha. Thank you.

Speaker #2: Hello. Yes, yeah. So, congratulations on the great results, sir. My question—Mr. Goel, we can't hear you. There's a lot of background noise.

Garvit Goel: Hello, am I audible?

Nikhil Mansukhani: Yes, we can hear you.

Garvit Goel: Yeah. Congratulations on the great results, sir. My question on

Nikhil Mansukhani: Mr. Goel, we cannot hear you. There is a lot of

Garvit Goel: Yeah. Great, sir. Okay.

Speaker #2: Hello. Hello. Am I audible, sir? Yeah. Much better. Yeah. Sir, my question is on the borrowing side. In Q1 FY27, total Jammu capex is around ₹600 crore, right?

Nikhil Mansukhani: Hello.

Garvit Goel: Hello, am I audible, sir?

Nikhil Mansukhani: Yeah.

Garvit Goel: My question on Borong site, sir, like in Q1 FY27, total Jammu CapEx is around INR 600 crores, right?

Speaker #3: Right.

Nikhil Mansukhani: Right. Jammu INR 600 crores.

Speaker #2: Jammu, ₹600 crores. Yeah. And ₹350 crores are already done and ₹250 crores are ongoing.

Garvit Goel: Yeah. 350 are already done and 250 are ongoing.

Speaker #3: Correct.

Nikhil Mansukhani: Correct. Yeah.

Speaker #2: Yeah. So, can you help me understand what the plan is? Are you going to use internal cash or take a bank loan for that, sir?

Garvit Goel: Can you help me to understand what is the plan? Are you going to use internal cash or taking debt for that, sir? Can you also tell me the breakup of the CapEx of left INR 250 crore?

Speaker #2: Can you also tell me the breakup of the CAPEX for the remaining ₹250 crores?

Nikhil Mansukhani: Basically, major breakup of the INR 250 crore which is left is in the construction PB and some of the machineries which the LCs are open. The majority of the machineries which have already been delivered, their amounts of commissioning and till the time the achievement of the COD is not done, those payments are pending. That is it.

Speaker #3: Basically, the major breakup of the 250 which is left is in the construction PB and some of the machineries for which the LCs are open. The majority of the machineries which have already been delivered are amounts for commissioning, and till the time the achievement of the COD is not done.

Speaker #3: Those payments are pending. That's it.

Speaker #2: Okay. Is that internal funding or external funding, sir?

Garvit Goel: Okay. That is internal funding or external funding, sir?

Speaker #3: No, it's partly internal and also externally funded, right? Seventy-fifty.

Nikhil Mansukhani: No, it is internal partly and external funding also. 70/30.

Garvit Goel: Got it, sir. Thank you, sir.

Speaker #2: Oh, okay. Got it. Thank you, sir.

Speaker #3: Okay.

Nikhil Mansukhani: Yeah.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask your question.

Operator 2: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. Participants who wish to ask a question may please press star and one now. The next question is from the line of Rahul Kamal from Vikaas Funds. Please proceed.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. Participants who wish to ask a question may please press star and one now. The next question is from the line of Rahul Kamal from Vikaas Funds. Please proceed.

Speaker #1: Participants who wish to ask a question may please press star and one now. The next question is from the line of Rahul Kumar from Vaikaria Fund.

Speaker #1: Please proceed.

Speaker #3: Yeah, hi. Just one question. I think the guidance which you had given for the company as a whole—that's something around ₹5,000 crore for this year.

Rahul Kamal: Yeah, hi. Just one question. The guidance which you had given for the company as a whole, that is something around INR 5,000 crores for this year, and that includes, I think, INR 1,500 crores from the Saudi plant. Does that mean that from the standalone business, we are expecting a more of a INR 3,500 crore kind of a top line? That seems to be a more of a flat on a YoY basis. Can you just help us understand that?

Speaker #3: And that includes, I think, ₹1,500 crore for the Saudi plant. So, does that mean that from the standalone business we are expecting more of a ₹3,500 crore kind of topline?

Speaker #3: And that seems to be more or less flat on a year-over-year basis. So, can you just help us understand that?

Nikhil Mansukhani: Yes. Currently with Saudi, which would be around INR 1,200 or some odd crores. India would be around INR 3,800. It would be a nominal growth in India and the rest would come in from NPC Saudi.

Speaker #2: Yes. Currently, with Saudi, it would be around ₹1,200 crore or thereabouts. India would be around ₹3,800 crore. So it would be a nominal growth.

Speaker #2: In India, and the rest would come in from NPC Saudi.

Speaker #3: Okay, okay. And this Saudi—I think you mentioned earlier that by exit quarter, maybe around ₹300–400 crore kind of a run rate—which you'll be doing on a quarterly basis.

Rahul Kamal: Okay. This Saudi, I think you mentioned earlier that by exit quarter, maybe around INR 300 crore to INR 400 crore kind of a run rate which will be doing on a quarterly basis. Let us say if we look at FY28 onwards, how do you see this business scaling up?

Speaker #3: But let's say, if we look at FY28 onwards, how do you see this business scaling up?

Speaker #2: So FY28 onwards, we are looking at anything between ₹2,400 crore to ₹3,000 crore top line from Saudi.

Nikhil Mansukhani: FY28 onwards, we are looking at anything between INR 2,400 crores to INR 3,000 crores top line from Saudi.

Speaker #3: Okay. Okay. Okay. And FY28 will still be on a plain basis and not exactly including the coating plant, which will come later on. Is that correct?

Rahul Kamal: Okay. FY28 will still be on a plain basis and not exactly including the coating plant which will come later on. Is that correct?

Speaker #2: It will come by March, so we would get the majority of the revenue from the coating as well.

Nikhil Mansukhani: It will come by March, so we would get majority of the revenue of the coating as well.

Speaker #3: In FY28? Okay. You mentioned that it is a slightly higher operating margin versus the current plan.

Rahul Kamal: In FY28?

Nikhil Mansukhani: Yes.

Rahul Kamal: Did you mention that it is a slightly higher operating margin versus the current plan picture?

Speaker #2: Yes. It would.

Sandeep Kumar: Yes, it would.

Speaker #3: Okay. Okay. Okay. Understood. Thank you.

Rahul Kamal: Okay. Understood. Thank you.

Speaker #2: Okay. Thank you.

Sandeep Kumar: Okay. Thank you.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star one to ask a question.

Operator 2: Thank you. Before we take the next question, we would like to remind participants that you may press star one to ask a question. The next question is from the line of Panil Ramabat from Choice Institutional Equity. Please proceed.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star one to ask a question. The next question is from the line of Panil Ramabat from Choice Institutional Equity. Please proceed.

Speaker #1: The next question is from Fennel Ramabad of Choice Institutional Equity. Please proceed.

Speaker #3: Hello.

Panil Ramabat: Hello.

Fenil Brahmbhatt: Hello.

Sandeep Kumar: Hi, good morning.

Speaker #2: Hi.

Speaker #3: Hi, good morning. Actually, congratulations on a good set of numbers. So, I just want to understand the NPC acquisition, and what I am saying is that there is no impact of that acquisition on our interest expense.

Panil Ramabat: Actually, congratulations for a good set of numbers. I just want to understand that NPC acquisition and what I am saying, there is no impact of that acquisition on our interest expense. Can you throw some light over there? Because when we did this acquisition, we were expecting some impact on our interest expense, and that will impact our bottom line, but it's not showing as of now. How we have digested that and not got any impact on the interest.

Fenil Brahmbhatt: Actually, congratulations for a good set of numbers. I just want to understand that NPC acquisition and what I am saying, there is no impact of that acquisition on our interest expense. Can you throw some light over there? Because when we did this acquisition, we were expecting some impact on our interest expense, and that will impact our bottom line, but it's not showing as of now. How we have digested that and not got any impact on the interest.

Speaker #3: So, can you throw some light over there? Because when we did this acquisition, we were expecting some impact on our interest expense, and that will impact our bottom line.

Speaker #3: But it's not showing as of now. So, how do we digest that and not get any impact on the interest?

Speaker #2: So, Mr. Fennel, as you know, we have taken almost 70% loan for this Saudi acquisition, and the acquisition happened in the middle of May.

Sandeep Kumar: Mr. Panil, as you know that we have taken almost 70% loan for this Saudi acquisition.

Panil Ramabat: Right.

Fenil Brahmbhatt: Right.

Sandeep Kumar: The acquisition happened in the middle of May, so only one and a half month interest cost has already been factored in this cost. You are not seeing any cost increase here because there are some other costs which are reduced from Man Industries in the operation. The total cost is coming INR 40 crore, which includes almost 40 to 45 days interest on the loan we have taken for NPC acquisition.

Speaker #2: So only one and a half months' interest cost has already been factored into this cost. But you are not seeing any cost increase here because there are some other costs which have been reduced for Man Industries.

Speaker #2: India operation. So, the total cost is coming to ₹40 crores, which includes almost 40–45 days' interest on the loan we have taken for the NPC acquisition.

Sandeep Kumar: The total cost is coming INR 40 crore, which includes almost 40 to 45 days interest on the loan we have taken for NPC acquisition.

Speaker #3: Right. And you are saying our annual target will be around ₹190 crore.

Panil Ramabat: Right. You are saying our annual target will be around INR 190 crore.

Fenil Brahmbhatt: Right. You are saying our annual target will be around INR 190 crore.

Speaker #2: 190 crores for the year. Yes.

Sandeep Kumar: INR 190 crore for the year, yes.

Speaker #3: And that is including the impact of this acquisition as well.

Panil Ramabat: That is including the impact of this acquisition as well.

Fenil Brahmbhatt: That is including the impact of this acquisition as well.

Speaker #2: Yes. Fennel, quickly to clearly answer your question: the loan is not on the Man Industries books. It's on the books of NPC. And so, consumer IGA, but the interest and everything is on NPC.

Sandeep Kumar: Yes.

Nikhil Mansukhani: Panil, quickly to clearly answer your question, the loan is not on the Man Industries book, it is on the book of NPC. It will come in the console, but the interest and everything is on NPC. From there, whatever revenue comes, it will get cut and then accordingly this, and then it is reflected in the console.

Speaker #2: So, one says whatever revenue comes, it will get cut, and then accordingly this, and then it's reflected in the consumer.

Speaker #3: Got it. Got it. Thank you so much for the clarification, and all the best.

Panil Ramabat: Got it. Thank you so much for clarification and all the best.

Fenil Brahmbhatt: Got it. Thank you so much for clarification and all the best.

Speaker #2: Thank you. Thank you.

Sandeep Kumar: Thank you.

Speaker #1: Thank you. The next question is from the line of Sandeep from MoneyGrow Asset. Please proceed.

Operator 2: Thank you. The next question is from the line of Sandeep from Moneyview Asset. Please proceed.

Operator: Thank you. The next question is from the line of Sandeep from Moneyview Asset. Please proceed.

Speaker #4: Yeah. Hi. Good afternoon. Since until DDP model, trade cost has been moved below the gross profit, but it recovers in revenue, right? So, can you...

[Analyst] (Moneyview Asset): Yeah, hi. Good afternoon. Under DDP model, freight cost has to be below the gross profit, but is recovered to revenue.

Sandeep Kumar: Sandeep, your voice is cracking and coming. We cannot hear you.

Speaker #2: Sorry, there's some scratching and we can't hear you, Sandeep.

Speaker #4: I'm not audible now?

[Analyst] (Moneyview Asset): Am I audible now?

Speaker #2: You are audible. Yes.

Sandeep Kumar: You are audible.

Nikhil Mansukhani: Yes.

Speaker #4: Yeah, okay. Under the DDP model, trade cost has moved below gross profit, but it recovers to revenue, right? So could you provide a like-for-like gross margin expansion, excluding DDP trade cost?

[Analyst] (Moneyview Asset): Yeah. Okay. Under DDP model, freight cost has moved below gross profit but is recovered to revenue, right? Could you provide a like for like gross margin expansion excluding DDP freight pass through?

Speaker #4: So

Sandeep Kumar: That is not possible because this is an integrated part of the order which we invoice to customer. When we get an order from the customer, that price is already factored in that.

Speaker #2: That is not possible because it's an integrated part of the order which we invoice to customers. It is not like, when we get an order from the customer, that price is already factored in.

Speaker #2: It's not possible to take that out from the product cost and DDP, and then give you the profit on that.

[Analyst] (Moneyview Asset): Okay.

Sandeep Kumar: It is not possible to take out that from the product cost and DDP and then give you the profit on that.

Speaker #4: And are you able to recover the entire trade cost, right, or is it like...

[Analyst] (Moneyview Asset): Are you able to recover the entire freight cost or at a like-

Speaker #2: No, no. We are able to recover the trade cost and more because, obviously, we get to load our margins on multiple handling, multiple locations, and multiple transportation.

Sandeep Kumar: No, we are able to recover the freight cost and more because obviously we get to load our margins on multiple handling, multiple locations, multiple transportation. In fact, that is one of the reasons why the EBITDA goes up.

Speaker #2: So, in fact, that's one of the reasons why the EBITDA goes up.

Speaker #4: Okay, okay. Go ahead. Thank you, sir.

[Analyst] (Moneyview Asset): Okay, got it. Thank you, sir.

Speaker #2: Thanks.

Speaker #1: Thank you. The next question is a follow-up from Ganesh Rao of Punavi Capital. Please proceed.

Operator 2: Thank you. The next question is a follow-up question from the line of Ganesh Rao from Purnarvi Capital. Please proceed.

Operator: Thank you. The next question is a follow-up question from the line of Ganesh Rao from Purnarvi Capital. Please proceed.

Speaker #3: Thank you, team, for the follow-up. One question on NPC: What is the current EBITDA per ton at NPC, and where do we expect it to settle, say, at 70% and 85% capacity utilization?

Ganesh Rao: Thank you, team, for the follow-up. One question on NPC is what is the current EBITDA per ton at NPC and where do we expect it to settle, say at 70% and 85% capacity utilizations?

Speaker #2: So, we don't disclose EBITDA per ton. We only give you the revenue number and the EBITDA and the final number. So actually, the point is, Ganesh, in our business it's very different.

Sandeep Kumar: We do not disclose EBITDA per ton. We only give you the revenue number and the EBITDA and the final number.

Ganesh Rao: Okay.

Nikhil Mansukhani: Actually, the point is, Ganesh, in our business it is very different. The API business, a lot of the grades are very different. Suppose you can do from X 62 to X 80 and the same diameter pipe would cost you USD 2,000 and the same pipe would go for USD 1,000 also. I mean, one is an X 42, one is an X 50. You cannot determine exactly how the EBITDA would run. It depends on the design mix, on the orders, the criticality of orders, whether it is water or oil and gas, whether it is underwater, is above water. There is a lot of complexity to it. That is why we are not able to just break it down.

Speaker #2: In the API business, a lot of the grades are very different. Suppose you can do from X52 to X80, and the same diameter pipe would cost you $2,000.

Speaker #2: And the same pipe would go for $1,000 also. But I mean, one is an X42, and one is an X80. So you cannot determine exactly how the EBITDA would run.

Speaker #2: It depends on the design mix, on the orders, the criticality of orders, whether it's water or oil and gas, whether it is underwater or above water.

Speaker #2: There are a lot of complexities to it. That's why we are not able to just break it down.

Speaker #4: Yes, sir, that makes sense. Okay.

Ganesh Rao: Yes, sir. That makes sense. What would be the normalized working capital requirement for us for every INR 1,000 crore of revenue that we generate from Southeast NPC?

Speaker #3: What would be the normalized working capital requirement for us for every ₹1,000 crore of revenue that we generate from Southeast NPC?

Speaker #2: For NPC?

Nikhil Mansukhani: For NPC?

Speaker #3: Yeah. For NPC working capital.

Ganesh Rao: Yeah, for NPC working capital.

Speaker #2: So, NPC working capital is approximately around $100 million to $125 million, on a top line of, suppose, $200 million.

Nikhil Mansukhani: NPC working capital is approximately around $100 million to $125 million on a top line of suppose $200 million.

Speaker #3: So maybe $200 million, okay. $125 million is the working capital.

Ganesh Rao: With $200 million, okay, $125 million is working capital.

Nikhil Mansukhani: Yes. Because over there when you are working locally, companies, you are not needing to give a lot of the ABGs and BGs and everything when you work with Aramco. Basically, all the non-fund base of LC, basically, that is about it, nothing else.

Speaker #2: Yes, yeah. Because over there, when you're working locally with companies, you're not needing to give a lot of the ABGs and BGs and everything when you work with Aramco.

Speaker #3: Makes sense.

Speaker #2: It's basically all the non-fund based LC, basically that's about it. Nothing else.

Speaker #3: Makes sense.

Ganesh Rao: Right, sir. Last question that I have is, given the history behind NPC and how it came into the table and how we got a chance to acquire it, what are two or three specific operational changes that you think if you make we can materially improve NPC's economics over the next 2 to 3 years compared to what specifically they have been able to do?

Speaker #4: The last question I have is, given the history behind NPC and how it came to the table, how did we get a chance to acquire it, right?

Speaker #4: What are two or three specific operational changes that you think, if you make them, we can materially improve NPC's economics over the next two to three years compared to what, strictly, they've been able to do?

Speaker #2: Yeah, so this is very important. We've actually already changed a lot of the operations people, because there was a lot of wastage which they were doing.

Nikhil Mansukhani: Yeah. This is very important. We have actually already changed a lot of the operations because there was a lot of wastage which they were doing, which was going into double figures, and we have already cut it down to less than double figures in single digits. This was absolutely money wasted on the table, number 1. Number 2 is they had a limitation on the spiral mill. They were not upgrading their mill to 100 inch, which is the general norm above 84 and 100 is the general size which all the water orders are going 88, 92, 96, and 100. So they were completely out of that business, and they were not generating any revenue through that, not even their fixed cost, which we have already managed to do, and we have almost completed, and we are already on trials for that.

Speaker #2: Which was going into double figures, and we've already cut it down to less than double figures, in single digits. This was absolutely money wasted on the table.

Speaker #2: Number one. Number two is, they had a limitation on the spiral mill. They were not upgrading their mill to 100 inches, which is the general norm above 84.

Speaker #2: And 100 is the general size to which all the water orders are going—88, 92, 96, and 100. So they were completely out of that business and they were not generating any revenue through that.

Speaker #2: Not even their fixed cost, which we have already managed to do, and we've almost completed it. We're already on trials for that. So, in the last three months, we've been focusing on these two things.

Nikhil Mansukhani: In the last 3 months we have been focusing on these two things, plus a lot of the consumables they were buying from Japan because obviously, inherently, they were 52% owned by Japanese. That is one of the major reasons. These three things we have now, consumables we have got because of India and our costing and our relationship, we have managed to bring these three things down, which will help get the cost also down of the company and convert in better efficiency and revenue and bottom line.

Speaker #2: Plus, a lot of the consumables they were buying from Japan because, obviously, inherently, they were 52% owned by Japanese. So that's one of the major reasons these three things we have now—consumables we have got because of India and our costing and our relationship—we've managed to bring these three things down, which will help get the cost of the company down as well.

Speaker #2: And convert it into better efficiency, revenue, and bottom line.

Ganesh Rao: That is great to hear, sir. Thank you for answering all my questions.

Speaker #3: That's great to hear, sir. Thank you for answering all my questions.

Speaker #2: Thank you. Thank you.

Nikhil Mansukhani: Thank you.

Speaker #1: Thank you. The next question is from the line of Tasha Zaveri from Crown Capital. Please proceed.

Operator 2: Thank you. The next question is from the line of Darshan Jhaveri from Crown Capital. Please proceed.

Operator: Thank you. The next question is from the line of Darshan Jhaveri from Crown Capital. Please proceed.

Speaker #5: Hello, thank you so much for giving me an opportunity again, sir. Just one question, sir: when you say a quoting plant will improve our margin by three to four percent, could you please elaborate?

Darshan Zaveri: Hello. Thank you so much for giving me an opportunity again, sir. Just one question, sir. When you say a coating plant will improve our margin by 3% to 4%, most of what we will produce in Saudi will also be coated. Will that push our Saudi margins towards 23% to 24%? Why am I asking this? Because if we expect Saudi to be roughly 30% to one-third or 40% of our business by FY28, that would push our margin significantly higher from what they are right now, right? Can in FY28, can we look at around 17% margin with coating coming in?

Darshil Jhaveri: Hello. Thank you so much for giving me an opportunity again, sir. Just one question, sir. When you say a coating plant will improve our margin by 3% to 4%, most of what we will produce in Saudi will also be coated. Will that push our Saudi margins towards 23% to 24%? Why am I asking this? Because if we expect Saudi to be roughly 30% to one-third or 40% of our business by FY28, that would push our margin significantly higher from what they are right now, right? Can in FY28, can we look at around 17% margin with coating coming in?

Speaker #5: So most of what we'll produce in Southey will also be quoted, and so will that push our Southey margins towards 23, 24 percent? Why am I asking this?

Speaker #5: Because it's expected Southey will be roughly 32%, or one-third, or 40% of our business by FY28. That would push our margins significantly higher than what they are right now, right?

Speaker #5: So, in FY28, can we look at around a 17 percent margin with quoting coming in?

Speaker #2: That's the ratio of the company to go there. But sometimes you need to be realistic also because we need to also because like we said the capacity utilization isn't great.

Nikhil Mansukhani: Darshan, that is the wish of the company to go there. But sometimes you need to be realistic also because we need to also because like we said, the capacity utilization is not great. So you have to get a design mix of orders and utilize capacity also. Our idea is to be, for the next three to five years, consistently delivering between 14% to 16%. I hope with the Saudi acquisition and the coating numbers pushing up the EBITDA, we should be able to reach and hopefully, but I cannot commit as on today. But that is the idea to reach to that number. Yes.

Speaker #2: So you have to get a design mix of orders and utilize capacity also. Our idea is to consistently deliver, for the next three to five years, between 14 to 16 percent.

Speaker #2: And I hope with the Southey acquisition and the quoting numbers pushing up the EBITDA, we should be able to reach—and hopefully, but I cannot commit as of today—but that's the idea, to reach that number, yes.

Speaker #5: No, fair enough. I was just looking directionally. That's the level that we are going at, right? And just—sorry, sir, again, for Mariner. I think we got some payment in of ₹70 crore in Q4 FY25.

Darshan Zaveri: No, fair enough. I was just looking directionally that is the level that we are going at. Just sorry, sir, again, for Marino, I think we got some payment in of INR 70 crores in Q4 FY25. That would get reflected in other income because I just was trying to find where would that money get reflected, the upfront amount that we have received.

Darshil Jhaveri: No, fair enough. I was just looking directionally that is the level that we are going at. Just sorry, sir, again, for Marino, I think we got some payment in of INR 70 crores in Q4 FY25. That would get reflected in other income because I just was trying to find where would that money get reflected, the upfront amount that we have received.

Speaker #5: So that would get reflected in other income, because I was just trying to find where that money would get reflected, right? The upfront amount that we've received.

Speaker #2: Yeah, that's already come, and it will always come as a subsidiary in the other income because it's not from the core business.

Nikhil Mansukhani: Yeah, that is already come, and Marino will always come as a subsidiary in the other income because it is not from the core business.

Sandeep Kumar: No, I will explain to you. At this transaction, we signed the JDA in March 2025, and based on that, we did the transaction, and we showed a revenue of around INR 370 crores. Odd number of it, INR 367 crore something in FY25. So INR 17 crore was used against that particular receivable for which sales was booked in the Marino Shelters.

Speaker #3: No, no. I will explain to you. In this condition, we signed the JDA on March 25, and based on that, we did the transition and we showed a revenue of around ₹370 crore.

Speaker #3: Odd number of ₹367 crore something in FY25. So, ₹70 crore was used against that particular receivable for which sales was booked in the Marino shelter.

Speaker #5: Okay. So, we showed the revenue. It didn't come in as other income, but going forward, it's going to come in as other income.

Darshan Zaveri: Okay. So we showed revenue, it did not come in other income, but going forward it is going to come in other income.

Darshil Jhaveri: Okay. So we showed revenue, it did not come in other income, but going forward it is going to come in other income.

Speaker #2: Going forward, it will also come into the sales part there, and finally, cash flow will come to 30 to 50 crores.

Sandeep Kumar: Going forward also it will come into sales part there, and finally, cash flow will come INR 30 to INR 50 crore.

Speaker #5: Okay. Okay. Okay. Okay. Got it. Got it. Yeah. Yeah. Thank you so much. That's it from my side. Yeah.

Darshan Zaveri: Okay. Got it. Thank you so much. That's it from my side.

Darshil Jhaveri: Okay. Got it. Thank you so much. That's it from my side.

Speaker #1: Thank you. The next question is a follow-up question from Viraj at Manindo. Please proceed.

Operator 2: Thank you. The next question is a follow-up question from the line of Viraj from Man Group. Please proceed.

Operator: Thank you. The next question is a follow-up question from the line of Viraj from Man Group. Please proceed.

Speaker #6: Hi Nikhil, it's me again. Thank you for taking my question. In your press release, you mentioned a big pipeline of ₹24,000 crores. Can you give us a flavor for the kinds of orders included here?

[Company Representative] (MoneyGrow): Hi, Nikhil, it's me again. Thank you for taking the question. In your press release, you mentioned a bid pipeline of INR 24,000 crore. Can you give us a flavor for the kinds of orders here? How much is Middle East, how much is India, how much is other export markets, oil and gas versus water versus And what is the kind of bidding pipeline you're seeing going forward as well?

[Analyst] (MoneyGrow): Hi, Nikhil, it's me again. Thank you for taking the question. In your press release, you mentioned a bid pipeline of INR 24,000 crore. Can you give us a flavor for the kinds of orders here? How much is Middle East, how much is India, how much is other export markets, oil and gas versus water versus And what is the kind of bidding pipeline you're seeing going forward as well?

Speaker #6: How much is the Middle East? How much is India? How much is from other export markets? Oil and gas versus water — and what is the kind of bidding pipeline you're seeing going forward as well?

Speaker #2: So, out of this ₹24,000 crore, around 70 percent is approximately from the MENA region—MENA and extended MENA.

Nikhil Mansukhani: Out of the INR 24,000 crores, around 70% is approximately MENA regions, MENA and extended MENA.

Speaker #6: Right.

[Company Representative] (MoneyGrow): Right.

[Analyst] (MoneyGrow): Right.

Speaker #2: And out of the ₹24,000 crores, approximately 35 percent is water.

Nikhil Mansukhani: Out of the INR 24,000 crores, approximately 35% is water.

Speaker #6: Okay.

[Company Representative] (MoneyGrow): Okay.

[Analyst] (MoneyGrow): Okay.

Speaker #2: Thirty-five to forty percent is water. That includes India and international.

Nikhil Mansukhani: 35% to 40% is water. That includes India and international.

Speaker #6: Understood. And what kind of bids are you seeing coming up, or what is the pipeline that you're seeing beyond the ones you've already bid for, in terms of international tenders or orders?

[Company Representative] (MoneyGrow): Understood. What is the kind of bids that you are seeing coming up or pipeline that you are seeing coming up beyond the ones you bid for in terms of international tenders or orders? Just magnitude, order of magnitude.

[Analyst] (MoneyGrow): Understood. What is the kind of bids that you are seeing coming up or pipeline that you are seeing coming up beyond the ones you bid for in terms of international tenders or orders? Just magnitude, order of magnitude.

Speaker #6: Just magnitude order of magnitude.

Speaker #2: Some very, very large pipelines are planned throughout the world, and we are hoping those come through. Some of them will, because those countries have the financial capabilities and have the financial closure in place.

Nikhil Mansukhani: Some very, very large pipelines planned throughout the world. We are hoping those come through. Some of them will because those countries have the financial capabilities and have the financial closure in place. Some of them will take some time. But yeah, we are seeing unlike last few years, when COVID finished in 2022, we saw a lot of traction, a lot of international business came in because two years there was absolutely no grade.

Speaker #2: And some of them will take some time, but yeah. We are seeing, unlike the last few years, when COVID finished in '22, we saw a lot of traction—a lot of international business came in because for two years there was absolutely none. So right now, with the war hopefully sooner or later closing down, there is going to be lots and lots of traction.

[Company Representative] (MoneyGrow): Infrastructure.

[Analyst] (MoneyGrow): Infrastructure.

Nikhil Mansukhani: Yeah. So right now with the war, hopefully sooner or later closing down, there is going to be lots and lots of traction. I think nothing like we've seen before. So I think we are well-placed, and we are hoping to get our pie of the share for India and Saudi.

Speaker #2: I think it's nothing like we've seen before. So I think we're well placed, and we are hoping to get our share of the pie for India and South East Asia.

Speaker #6: And are you seeing it from a lot of new markets, like Central Asia, different markets, Venezuela—new markets as well?

[Company Representative] (MoneyGrow): Are you seeing it from a lot of new markets like Central Asia, different markets?

[Analyst] (MoneyGrow): Are you seeing it from a lot of new markets like Central Asia, different markets?

Nikhil Mansukhani: Yes.

[Company Representative] (MoneyGrow): Venezuela, new markets as well?

[Analyst] (MoneyGrow): Venezuela, new markets as well?

Speaker #2: Yes, there is South America. There are US countries. There is the Far East. Like I mentioned in my note first up, there is a lot of traction in the East because a lot of projects are coming up. They are the ones who really faced the difficulty of oil and gas due to the war.

Nikhil Mansukhani: Yes, there is South America, there is the GCC countries, there is Far East.

[Company Representative] (MoneyGrow): Okay.

[Analyst] (MoneyGrow): Okay.

Nikhil Mansukhani: Like I mentioned in my note for Taft that lot of traction in the East because a lot of projects coming up because they are the real ones who faced the difficulty of oil and gas due to the war.

[Company Representative] (MoneyGrow): Right.

[Analyst] (MoneyGrow): Right.

Speaker #2: So we saw some China?

Nikhil Mansukhani: Yes.

[Company Representative] (MoneyGrow): They won't logically source from China. Why would they come to India or Saudi?

[Analyst] (MoneyGrow): They won't logically source from China. Why would they come to India or Saudi?

Speaker #6: Why would they come to India? Just out of curiosity.

Nikhil Mansukhani: Most of the countries don't source from China, only very small, because they are all US investments and UK investments.

Speaker #2: Most of the countries don't source from China—only very small quantities—because they are all US investment units and US investment. So, that's somewhere we have an advantage.

[Company Representative] (MoneyGrow): Understood.

[Analyst] (MoneyGrow): Understood.

Nikhil Mansukhani: So that's somewhere we have an advantage.

Speaker #6: Okay, great. And my next question is regarding 28 revenues. This is obviously a transition year with NPC ramping up. With 28, NPC should be in a little more full gear.

[Company Representative] (MoneyGrow): Okay, great. My next question is regarding 2028 revenues. This is obviously a transition year with National Pipe Company Limited ramping up. So 2028 National Pipe Company Limited should be in sort of little more full gear. You have Jammu coming on, Dammam coating coming on. Can India, including Jammu, do about INR 4,500 crore to INR 4,600 crore top line and Middle East too, including Dammam, about INR 2,400 crore top line, so a total of about INR 7,000 crore?

[Analyst] (MoneyGrow): Okay, great. My next question is regarding 2028 revenues. This is obviously a transition year with National Pipe Company Limited ramping up. So 2028 National Pipe Company Limited should be in sort of little more full gear. You have Jammu coming on, Dammam coating coming on. Can India, including Jammu, do about INR 4,500 crore to INR 4,600 crore top line and Middle East too, including Dammam, about INR 2,400 crore top line, so a total of about INR 7,000 crore?

Speaker #6: You have Jammu coming on, Daman quota coming on. Can India, including Jammu, do about ₹4,600 crore top line and the Middle East too, including Daman, about ₹2,400 crore top line for a total of about ₹7,000 crores?

Nikhil Mansukhani: I can't give little numbers.

Speaker #2: I can't give little numbers.

Speaker #6: Yeah. Approximately. Ballpark. Ballpark.

[Company Representative] (MoneyGrow): Yeah. Approximately ballpark.

[Analyst] (MoneyGrow): Yeah. Approximately ballpark.

Speaker #2: I can give you a ballpark growth between 25 to 35 percent is where we will end up, because we don't know the world scenario, right?

Nikhil Mansukhani: I can give you a ballpark growth between 25% to 35% is where we will end up, because we do not know the world scenario, right?

Speaker #2: Like shipping, everything. So I can't commit to open-ended, but it should be between 25% to 35% growth.

[Company Representative] (MoneyGrow): Sure

[Analyst] (MoneyGrow): Sure

Nikhil Mansukhani: paying everything. I cannot commit to open-ended, but it should be between 25% to 35% growth.

Speaker #6: Understood. Thank you. All the best.

[Company Representative] (MoneyGrow): Understood. Thank you. All the best.

[Analyst] (MoneyGrow): Understood. Thank you. All the best.

Speaker #2: Thank you.

Nikhil Mansukhani: Thank you.

Speaker #1: Thank you. That was the last question for today. Thank you so much, manager and speakers, and thank you everyone for joining the call.

Operator 2: Thank you. That was the last question for today. Thank you so much management speakers, and thank you everyone for joining the call.

Operator: Thank you. That was the last question for today. Thank you so much management speakers, and thank you everyone for joining the call.

Speaker #2: Thank you.

Nikhil Mansukhani: Thank you.

Operator 2: On behalf of Man Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: On behalf of Man Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Browse all earnings call transcripts

Q1 2027 Man Industries (India) Ltd Earnings Call

Request TrialDemo

Man Industries

Earnings